ERBIL, Kurdistan Region of Iraq – Iraq on Tuesday declared that it is now self-sufficient in the production of oil derivatives, with Prime Minister Mohammed Shia’ al-Sudani directing the oil ministry to halt their imports, his office announced.

In a statement, Sudani’s office declared that Iraq’s “domestic production of petrol, diesel, and kerosene has reached levels exceeding domestic consumption rates.” 

Sudani further directed the oil ministry to “cease the imports of these products” and focus on controlling domestic consumption while transferring the surplus for export. 

The breakthrough follows expedited efforts by Baghdad over the past three years to make the country self-sufficient in oil derivatives, with Iraq having traditionally relied on imports, mainly from neighboring Iran, to cover its oil derivative needs. 

In March 2024, Sudani said that the cessation of imports of oil derivatives would save Iraq $3.2 billion annually.

A month prior, Iraq had reopened its largest oil refinery in Salahaddin province’s Baiji, a decade after its capture by Islamic State (ISIS) jihadists. 

The country has also taken significant strides to develop its oil and gas sector in recent years. In July 2023, Iraq inked a $27 billion mega contract with France’s TotalEnergies to develop the oil and gas sector over 25 years. 

Iraq produces an average of 4.4 million barrels of oil per day – the second largest in OPEC after Saudi Arabia – and exports 3.3 million barrels of that number.